Tuesday, March 12, 2013

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Worlds of difference Figure skating championships sees influx of tourists. >> pg. 2

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Tuesday, March 12, 2013

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canada’s only Daily Student Newspaper • founded 1906

Volume 106, Issue 82

Affiliate contract a costly mistake University Students’ Council facing a yearly $450,000 loss

Cameron Wilson Gazette

Alex Carmona News Editor When last year’s University Students’ Council passed the motion to reduce the University Community Centre fee paid by affiliate students to 38 per cent of the roughly $200 total, there was much hand-shaking and congratulation for finally giving the affiliate students a fair deal. Until then, affiliate students had paid both their own affiliate council fees, and the full UCC fee. In a unanimous vote, the USC decided the affiliates were being forced to pay for main campus services they did not necessarily benefit from, some of which were duplicated—at their own expense—on affiliate campuses. However, with the recent release of the 2013–14 budget, the USC is being forced to acknowledge last year’s affiliate agreement may not be financially viable in its current form. As a result of the agreement, the USC is facing a $450,000 loss per year—nearly 10 per cent of its

operating budget. “There were many assumptions of how we could take on the loss, but [last year’s USC] didn’t properly consider how they were going to accommodate the loss when push came to shove,” Tony Ayala, vice-president finance for the USC, said. One factor taken into account was an unexpectedly high number of first-years entering Western for the 2012­–13 school year. This provided the USC with between $100,000 and $150,000 extra revenue to make up for the shortfall. However, according to Ayala, the inherently temporary nature of this surplus was ignored by last year’s USC. “[Western’s administration] is not going to be doing that every year, and it’s going to be a $450,000 loss every year,” he noted. Ayala went on to argue last year’s council did not do enough research when deciding the percentage of the UCC fee the affiliates should pay. “I just think maybe not enough due diligence on the USC’s part was

done, and that’s something we have come to realize and we want to own. My personal opinion is that I don’t think the percentage we used was reflective. It’s just not the right number,” Ayala said. If passed, the 2013–14 budget will plug the hole with a $200,000 cash injection out of the USC’s bank account. This is in addition to a previous cash injection of $125,000 left behind from last year’s budget for the same purpose. Ayala stressed cash injections are a completely unviable long-term solution. A simultaneous long-term strategy will also be undertaken in the form of finding cost-cutting efficiencies in USC operations. The only alternative to these efficiencies, according to Ayala, would be a $6 to $7 base increase to the general student fee. “These injections are going to buy us time to implement a longterm strategy of finding efficiencies in our operations to make up for the shortfall,” Ayala explained.

Should enough efficiencies be found, the agreement could remain fiscally viable in its current form. If not, however, the USC and affiliate councils will likely be forced to renegotiate the amount affiliate students pay in 2016–17, when the agreement comes up for renewal. While the agreement could, in theory, be renegotiated at an earlier point should all stakeholders agree to do so, King’s University College Students’ Council President David Ennett and president-elect Jen Carter dismissed any possibility of returning to the table before 2016. “If there are unexpected concerns on the part of the USC, that’s unfortunate and we’re certainly going to work that out. But that doesn’t change the details of the affiliate agreement,” Ennett stated. “To be quite frank, the agreement doesn’t expire until 2017 and renegotiation doesn’t come up until 2016. The KUCSC has no intention of renegotiating the terms of the conversation until 2016, as per the agreement.”

USC looks at fee freeze Cam Smith News Editor An increase in student fees outlined in the recent University Students’ Council budget proposal has caused some controversy among faculty council presidents. The USC has proposed a $2 increase in base student fees, continuing the trend of fee increases that have risen 92 per cent over the last five years. Tomorrow night, Matt Helfand, Social Science Students’ Council president, intends to bring a motion to council suggesting a student fee freeze, to force consideration about the fee increase. “The first thing that struck me as odd is that when we were presented with the budget, we saw a $2 increase—the justification for which was a ‘maintenance of the service that students have come to expect,’” he explained. “We have an inflationary fee built into the budget to maintain service levels. So why is it we needed an extra $2 just to maintain these service levels?”

I think, from our perspective, we’re glad there is debate on the budget. —Adam Fearnall

University Students’ Council president

Helfand explained the fee was to compensate for Western Connections, which needed additional money to continue to support clubs. However, he noted past councils should have addressed this years ago. “If we don’t pass this $2 fee, students will be hurt by it, clubs will be hurt by it. But why is it the case that one year ago, or two years ago, they didn’t see this and they didn’t >> see Councillors pg.3

March 11 – 14, 2013

MENTAL HEALTH AWARENESS WEEK VISIT OUR BOOTH IN THE ATRIUM ALL WEEK!

WWW.UWO.CA/CAMPUS_LIFE/HEALTH_WELLNESS/


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